Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 38

38. Section 61 of the Principal Act is amended:

   (a)  by inserting before subsection (1) the following subsection:

"(1A) This section does not apply in relation to a fringe benefit in respect
of remote area holiday transport if subsection 143 (3) applies in relation to
the fringe benefit.";

   (b)  by omitting paragraph (1)(b);

   (c)  by omitting from paragraph (1)(c) all the words after "approved by the
        Commissioner," and substituting "in respect of the recipients
        expenditure; and";

   (d)  by inserting after paragraph (1)(c) the following paragraph:

"(d) if paragraph (c) does not apply:

        (i)    documentary evidence of the recipients expenditure is obtained
               by the recipient and that documentary evidence, or a copy, is
               given to the employer before the declaration date; or

        (ii)   the recipient gives to the employer, before the declaration
               date, a declaration, in a form approved by the Commissioner, in
               respect of the recipients expenditure;";

   (e)  by omitting paragraphs (1)(d) and (e) and substituting the following
        paragraphs:

"(e) where paragraph (c) does not apply-50%; and

   (f)  where paragraph (c) applies-50% of so much of the amount of the
        reimbursement as does not exceed the reimbursement that would have
        been paid if it had been calculated on the basis of the sum of the
        rates:

        (i)    prescribed for the purposes of paragraph 82KX (1)(a) of the
               Income Tax Assessment Act 1936; and

        (ii)   where 2 or more family members travelled in the car when it
               provided the transport by virtue of which the recipients
               expenditure is in respect of remote area holiday
               transport-prescribed for the purposes of this subparagraph.";
               and

   (f)  by inserting after subsection (1) the following subsection:

"(1AA) Where the recipients property in relation to a property fringe benefit
in relation to a year of tax is in respect of remote area holiday transport,
the amount that, but for this subsection and section 62, would be the taxable
value of the fringe benefit in relation to the year of tax shall be reduced by
50%.".